Evening Standard comment: New fares cap gives commuters little relief

For the eleventh year in a row, rail fares are to rise by more than inflation. The Government has today, with great fanfare, announced that it will cap the increase of unregulated fares at 6.1 per cent (some could have risen by nine per cent). But even fares that are controlled as part of an agreement between government and rail operators will rise by 4.1 per cent. The bottom line is that passengers will next year be paying even more for services that are not notably better. Most commuters won’t feel at all grateful that they are being fleeced by slightly less than the operators originally planned.

The reason why fares inexorably rise by more than the cost of living is squarely political. Back in 2007, the then government decided to shift the cost of the railways to a far greater extent from taxpayers to passengers, rather than dividing the cost half and half between them. The aim is for passengers to pay three-quarters of the cost of rail. That inexorably increasing cost is aggravated when government strikes a bad bargain with the rail operators to run a line, as happens depressingly often. But the upshot is that politicians are responsible for fare rises.

One reason why this trend is unfair is that not every part of the country relies to the same extent on rail. Many London commuters have little choice but to travel by train. An increase in rail fares amounts to a tax on London; it is unavoidable, unfair and unpopular.

Of course, Transport Secretary Patrick McLoughlin is right to curb the most egregious fare increases, billed as part of government moves to contain the cost of living, though ministers have yet to spell out what this will mean in detail. Labour has made great play with the cost-of-living argument, promising that it would not allow fares to increase by more than one per cent above inflation.

The most depressing aspect of this situation is that the Government is ratcheting up prices for the most productive part of the economy: London. The capital pays into the Treasury far more than it gets back; yet it is mercilessly exploited as a captive market for rail travel. Unfortunately, we have no choice but to pay up.

Labour and welfare

One area where Labour is losing ground to the Coalition is welfare. Ministers’ various curbs on benefits payments, such as the benefits cap, have proved popular with voters: it is one field where the Government has a clear polling lead. Just how potentially damaging this is is clear from our report today on internal Labour polling, commissioned by the party. The survey suggests that the Coalition’s reforms are especially popular with some of Labour’s target swing voters. While voters on average back the reforms by two to one, among this group the margin is more than seven to one.

Welfare alone will not decide the next election but it is a key issue in terms of the two major parties’ images. Yet it remains an area of discomfort for Ed Miliband: he has flip-flopped on the benefit cap — he now backs it — but says he will reverse the so-called bedroom tax. The impression of disarray was added to this week by his demotion of the tough and experienced Liam Byrne as shadow welfare secretary. Labour needs a credible welfare policy fast.

Film city

The BFI London Film Festival starts today, a star-studded celebration of cinema. Kate Winslet, Josh Brolin, Jesse Eisenberg, Robin Wright, Emily Mortimer, Jodie Whittaker, Colin Farrell and more are all expected over the next 11 days. London will make a glittering backdrop.